TA Securities foresees no new infrastructure projects in Budget 2022 because the government is focused on completing all ongoing projects, at this point.
On the other hand, the KL-Singapore High-Speed Rail project has also been dismissed, indicating the government is putting its priorities elsewhere.
“We do not anticipate Budget 2022 to generate much excitement in the construction sector, as the government is very likely to reiterate its commitment to completing all ongoing projects, such as the East Coast Rail Link, the Pan Borneo Highway, and the Central Spine Road.
“At this point, the government had already cancelled the KL-Singapore High-Speed Rail. We hope that in Budget 2022, the government will provide more information about the Mass Rapid Transit 3 (MRT3) project.
“It’s a low-hanging fruit that’s ready to be picked and has the potential to boost the economy,” the research house says in a report.
A delay in the execution of planned projects had visibly been noted considering many restrictions were imposed to curb the spread of COVID-19 since the start of the first MCO.
To recap, Budget 2021 proposed a development budget of RM69 billion, which is higher than the RM56 billion allocated in Budget 2020.
The RM15 billion allocated to fund the ongoing Pan Borneo Highway, the Gemas-JB Electrified Double Tracking Project, and phase one of the Klang Valley Double Tracking Project were all mentioned in Budget 2021.
The construction of the JB-Singapore Rapid Transit System and MRT3 in the Klang Valley, as well as RM2.7 billion set aside for rural infrastructure development, were also highlighted.
